“Make money fast.” It’s siren song that prompts far too many people to invest their savings in trends. Even cryptocurrency, for all its promises, cannot promise a high rate of return, at least not yet.
What should the average investor do then? Two things come to mind.
Safe ways to multiply money
First of all, run patience. Staying in control of your personal finances for the long haul takes some determination. Scott Shrum, president and COO of Hennessey Digital, likes a quote from Jack Bogle, founder of Vanguard: “Forget the needle. Buy the haystack.
Therefore, Shrum believes in certainty and stability before the hype. “Buying a basket of stocks – then holding it even when the market goes down – is always a winner in the long run,” he says. “This performance gap is not negligible either – passive investors outperform their more active counterparts by six to seven percentage points per year.”
Remember: Most worthwhile investments don’t happen in the short term. Rather, they continue to grow at a constant rate over years, decades, or even a lifetime.
Second, look for suggestions from people who have been there, done this. Nor are they individuals in the banking industry or on Wall Street. Anyone who has been a successful personal or business fund manager can speak intelligently about the preferred avenues for building safe wealth.
Below are several recommendations from knowledgeable professionals to help you build a diverse and healthy portfolio.
Avoid trendy shopping
The old adage still rings true: “If it sounds too good to be true, it is. That’s why John Hall, CEO of John Hall, focuses his money on low risk investments. As such, it eschews day trading and stays out of the bitcoin fray. Instead, he focuses on finding vehicles that will help his family achieve their goals.
For example, Hall recommends putting money in college funds. “If you’re a parent like me, you’ve probably been looking after your kids from the very beginning,” he explains. “Investing in the continuing education of your child is a worthwhile investment. Some funds, such as 529 savings accounts, may also offer tax benefits.
Of course, not all young people decide to pursue higher education after high school. Hall recognizes this fact by doubling down on his strategy. “If your child chooses not to go to college, the money can be reallocated to another beneficiary who wants to go to school,” he says. This could include another child, a spouse, a parent, or maybe even you.
Look into real estate
While property flipping can be a danger to hobbyists, real estate can also be a winning way to add wealth. After all, land is finite, which makes it precious. Plus, you may be able to accumulate money over time if you are willing to go the homeowner’s route.
Kurt Carlton, co-founder and president of New Western, sees long-term rentals as an attractive secondary source of income. According to Carlton, “Long-term rentals can be a great way to earn constant passive income while the value of your property continues to appreciate. “
Is there a risk associated with buying and owning real estate? Absoutely. But as Carlton points out, “In general, land and property tend to appreciate. This is one of the reasons that real estate has ranked as the # 1 investment choice for the majority of Americans since 2013. ”Just make sure that any property you buy is reasonably priced and is susceptible. to increase its market value.
Save money in retirement vehicles
Misty Larkins, President of Relevance, knows how exciting investing in stocks can be. However, she prefers to see further with her money. “Trending stocks do exactly that – trending,” she says. “Then they collapse, leaving you with a large investment that you will probably never get a return on. “
What is Larkins’ alternative to pocketing dollars in stocks that could collapse? She strongly believes in 401 (k) and related vehicles. And it’s not influenced by the fact that a 401 (k) doesn’t have the sizzling highs and lows of a stock. “I don’t care how boring it is because planning is a priority for me. The better I can plan for the future, the less I need to worry about later, ”she says.
Yenn Lei, Engineering Manager at Calendar, agrees with Larkins’ approach. “I’ve seen so many people who have been too quick to invest in things like GME (GameStop
ETL Robot founder Steve Gickling complements the conservative and secure approaches of Larkins and Lei’s “golden years”. “I would rather invest in something that will help me improve my future,” notes Gickling. “Having something like a fixed annuity is a wise, low risk financial investment. If I were to use one, I would thank myself when the retirement funds run out, as I would continue to receive continuous income for life. “
Spend Money Today to Improve Your Health Tomorrow
Everyone is complaining about the rising cost of health care. However, many people forget one investment route to lower their overall health care costs: an HSA.
Many employers offer HSAs, or health savings accounts, to their employees as a benefit. Yet workers often forget that HSAs can be viewed as a type of wealth building tool. “It’s not a typical place you would think of, but it’s worth it,” says Stephen Dalby, founder of Gabb. “You gradually add money to your HSA over the course of the year and can use it for health care expenses, including over-the-counter medications. Add the maximum amount you are allowed to each year and save what you are not using for your future retirement or a larger than expected medical bill.
Discover investment trends with your eyes wide open
Still interested in investing dollars in trends that look set to explode? Rather than going for a fad that has absolutely not proven itself, find one that has shown stability and longevity. Take the elderly care industry, for example. It is an investment consideration that attracts Jason Zuccari, vice-president, business development and external relations of Hamilton Insurance Agency.
“Investing in the senior housing vertical, via real estate or insurance, is certainly not as provocative or exciting as dogecoin, but it is a safe bet in the long term”, explains Zuccari. “The demand in the elderly care sector has been growing steadily and this trajectory is expected to continue on the rise as better health care translates into longer life. “
Chalmers Brown, CTO of Due, feels the same. “Invest in a very low value cryptocurrency
with long-term growth expectations, like the Internet of Things (IOT), is wise, ”says Brown“ As the world increasingly depends on the Internet of Things, this is a more stable investment that is expected to grow steadily over the years as devices that use IoT expand across the world.
Most people who sit comfortably haven’t treated wealth management like a trip to Vegas. They have taken the time to invest wisely and look to the future. As tempting as “get rich quick” may sound, it is never as heartwarming as making money safely.